Tuesday, September 7, 2021
The Boards of Directors of United Microelectronics Corp. (UMC), Fortune Venture Capital (a 100% subsidiary of UMC), and Chipbond Technology Corp. have approved the proposal of share exchange resolution. Following the issuance and exchange of new shares, UMC and Chipbond will establish a long-term strategic partnership.
UMC manufactures chips with advanced process technology for various IC applications. The company continues to pursue a comprehensive portfolio of technology and solutions, from 14 nanometers to 0.6 micron processes, in order to fulfill customers’ design needs. Chipbond’s operations mainly focus on panel driver IC assembly and testing, flip chip bumping, and wafer level chip scale packages (WLCSP). It also invests in fan-out system-in-package (FOSiP) and flip-chip system packaging (FCSiP) and other related high-end advanced packaging technology processes.
UMC is the first Taiwanese foundry to manufacture panel driver ICs, as well as the first to successfully use 28nm high-voltage process in AMOLED panel driver IC production, which has now advanced to 22nm process capabilities. Chipbond is the world’s leading driver IC packaging and testing house in capacity and technology. The two companies will cooperate closely in the field of driver ICs, integrate front-end and back-end process technologies, and develop driver IC solutions of higher frequency and lower power consumption, jointly providing a complete solution for customers in the panel industry.
In recent years, UMC has actively engaged in the development of compound semiconductor gallium nitride (GaN) power devices and radio frequency component processes, targeting market opportunities for high-efficiency power components and 5G radio frequency components. Chipbond has been packaging and testing power supply and RF components for many years, and has gained a pivotal position in this industry. Its services including flip chip bumping, thick copper heavy wiring (RDL) and WLCSP packaging and testing. In addition to silicon, Chipbond has also expanded its scope to compound wafers including gallium arsenide (GaAs), silicon carbide (SiC), and GaN. UMC and Chipbond are well positioned in the upstream and downstream of the industry supply chain, and will work closely together in these market segments to develop new market opportunities.
Based on the fact that both parties have been in close contact and cooperation in the field of driver ICs for many years, the Boards of Directors of the two companies have decided to acquire each other’s equities by way of share exchange, further strengthening the long-term strategic cooperation between the two parties.
All parties agreed to exchange shares in accordance with Article 156-3 of the Company Law, and Chipbond’s capital will increase with the issuance of 67,152,322 new ordinary shares as consideration, and in exchange for 61,107,841 new ordinary shares issued by UMC and 16,078,737 UMC common shares held by Fortune Venture Capital. The share exchange ratio is one UMC share to 0.87 share of Chipbond.
It is expected that after the completion of the share exchange transaction, UMC and its subsidiary Fortune Venture Capital will jointly hold approximately 9.09% of the equity in Chipbond, and Chipbond will hold approximately 0.62% of the equity in UMC.
“UMC has always been committed to expanding its operating scale through global diversified manufacturing, strengthening customer competitiveness, and enhancing value for shareholders. As semiconductor technology becomes increasingly more sophisticated, and according to market trends and common interests, UMC must continue to develop its own foundry technology while joining forces with strategic partners. By combining technical expertise of both parties and integrating upstream and downstream resources, we can provide customers with advanced process technology solutions and a more comprehensive service,” said President S.C. Chien.
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